SOUTHEAST Asia is a data centre goldmine, and Malaysia is poised to seize a significant share. However, to compete with regional rivals like Singapore, we need to refine our strategies and double down on our strengths.
Singapore’s established green data centre standard has set a high bar for the region, attracting environmentally conscious companies, with its clear focus on energy efficiency.
While Malaysia is developing its power usage effectiveness guidelines, we have a unique opportunity to leapfrog ahead by incorporating cutting-edge sustainability practices from the outset.
This could position Malaysia as a leader in green data centre development.
On cybersecurity, both nations recognise the critical importance of protecting sensitive data. Malaysia’s newly enacted Cyber Security Act 2024 provides a foundation, but its effectiveness remains to be seen.
Given its recent implementation, it is crucial to ensure robust enforcement and proactive engagement with the industry.
This will not only address potential vulnerabilities but also build confidence that Malaysia is committed to creating a secure and trustworthy environment for data centre operations.
A clear demonstration of this commitment will be essential for attracting global players and investors in the data centre sector.
Both countries require environmental impact assessments for large-scale data centres.
However, Malaysia’s EIA (Environmental Impact Assessment) process is based on legislation from 1974 – long before the data centre boom.
While this provides a general framework, we need to develop more tailored assessment criteria that address the specific environmental challenges posed by data centres, including energy consumption, water usage and waste management.
Singapore’s call-for-application scheme streamlines planning and aligns growth with sustainability goals.
Malaysia can create an equally effective system, tailored to our unique context, providing clarity and efficiency in the development process to attract greater investment.
Malaysia has all the ingredients for success in the data centre arena: strategic location, robust infrastructure and a growing technology talent pool.
By strategically refining our regulatory landscape and showcasing our commitment to sustainability and security, we can unlock our full potential and become a global data centre leader.
Thulasy Suppiah
Lawyer focusing on AI
